What profit can you make with a pizza business?

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pizza takeaway franchise

Businesses that serve and/or deliver pizzas can be hugely profitable opportunities for investors who are interested in franchising with an established business model. The pizza industry is huge across the world, with 49 percent of the UK population eating pizza at least once a week. Every year, £2.9 billion is spent on pizza in the UK, £1,125,000 of which goes towards takeaways alone.

Pizza delivery restaurants vary enormously in the type of pizza they offer, from thick, stuffed-crust pizzas loaded with toppings, to more authentic, thinner pizzas, often cooked in a traditional wood-fired pizza oven. Pizza franchises should match their brand image and marketing to their business priorities. With so many pizza brands in operation, there is something to suit every craving and personal taste.

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Pizza delivery jobs

Many people looking for work are drawn to pizza delivery chains for their flexible working hours. Pizza delivery driver jobs are particularly popular among students looking to earn some extra money and single professionals who fit their work around other responsibilities. As with any occupation, there are positives and negatives to delivery driver jobs.

Advantages:

  • Employees can get fresh air, travelling from house to house.
  • Employees can get a lot of exercise both mentally and physically. Delivery workers are constantly learning and memorising new addresses and walking to and from houses.
  • Flexible working hours are often available people order pizza at all times of the day and night, so, depending on the employer, delivery drivers do not have to stick to a 9-5 routine.

Disadvantages:

  • It can be dangerous. Because delivery drivers spend a lot of time driving, often work at night and carry cash, they are more likely to be involved in a traffic accident and are more attractive to robbers.
  • The risk of physical injury is higher. As more time is spent in a stationary position in a car or on a motorbike, issues such as joint pain or back ache are more likely to occur.
  • The working hours are often unsociable and can lead to social isolation.
  • Many delivery drivers must use their own vehicle and pay for the petrol they use, as well as any repairs that are needed as a result of the overuse of their vehicle. This can mean that drivers spend more than they earn on car-related costs.

What profit can you make with a pizza business?

Type of pizza business

When working out how much profit you can make with a pizza business, you should consider what type of pizza shop you want to run. If you choose the franchise route, much of the risk of starting a new business is alleviated. With the security net of existing brand recognition and an established customer base, youre likely to become profitable much sooner. Or you may decide you want more freedom to run the business how you like and have more input in the creative direction of the business. In this case, you could open an independent start-up instead.

Profit of a pizza business

So, what sort of profit can you expect to make when selling the fast food favourite? Well at a basic level, the standard ingredients used to make a pizza - flour, yeast, sauce, cheese and toppings - arent particularly expensive. Cheese is the most expensive ingredient but, when purchased wholesale, there are drastic reductions anyway. When making a small margarita pizza, the cheese might cost around 50p, the dough around 20p and the sauce around 0.04p. Thats just over 70p for a small margarita pizza. A pepperoni pizza is estimated to cost approximately £1.50 to make. Think about how much youre used to spending for this at your supermarket, takeaway or restaurant. There is plenty of scope to make significant profits with pizza franchises.

There are, however, other expenses that come into it, including paying wages, rent, utility bills and franchisee fees.

Factors that influence profitability

We have established the mark up on individual pizzas, but getting an idea of the profitability of the business as a whole is more difficult. As well as the business model, factors like the location and its footfall will significantly influence it. Even if you are able to make healthy profits from the pizza sales, if you dont have enough customers ordering from you, the business wont be able to survive. This highlights the importance of choosing the right location and conducting through research into the local area.

Pizza delivery London

Many of the greatest pizza chains can be found in London. Lets take a look at a couple of success stories.

Pizza Union

Describing itself as an Italian pizza bar, this pizza restaurant focusses on producing high-quality, authentic pizzas, fire-baked in a Roman style. All Pizza Union pizzas are 12 inches wide and thin, so they can be baked in minutes. This pizza chain offers great value for money too, giving customers the chance to order a margherita pizza for just £3.95, while the most expensive pizza costs just £6.50. Salads, dips and desserts also have a place on the menu, as well as cocktails such as mojitos and bellinis for less than £3.80.

As Tripadvisors top pizza delivery company in London, Pizza Union can be found in Aldgate, Dalston, Kings Cross and Spitalfields. The pizza chain offers customers the option of eating in or taking away, and has curated its own dedicated pizza delivery service, so hungry customers dont even have to leave the house to get their pizza fix.

Buongiorno e Buonasera

This pizza restaurant has locations in Bicester and Oxford, as well as on Baker Street in London. Buongiorno e Buonasera which, literally translated, means good day and good evening aims to transport local customers to Italy and make Italian customers feel right at home. This is a genuine Italian experience, in terms of the pizza ingredients, the menu, the interior design and even the music, which should combine to create a warm feeling.

This pizza chain strives to give customers a true taste of Italy. A set menu of nine different pizzas, each from a different Italian region, is available every evening. The pizzas are switched up every week and cost £14.90. During the summer months, Buongiorno e Buonasera sells traditional gelato, denser than typical ice-cream and made without the use of milk powder.

The restaurant also aims to cater for everyone - providing gluten-free versions of its pizzas for an extra £2 and using Deliveroo to deliver its food to customers in their own homes.

Pizza Hut Delivery

Pizza Hut is, of course, one of the biggest pizza chains out there. Founded in 1958 in Wichita in the US by brothers Dan and Frank Carney, Pizza Hut arrived in the UK 15 years later, in 1973. Pizza Hut Delivery offers consumers the chance to purchase and eat the chains pizzas from the comfort of their own home. Its first franchised outlet opened in 2001 and today there are more than 700 Pizza Hut restaurants and delivery branches across the UK, almost 350 of which are franchised.

Unfortunately, Pizza Hut is not currently accepting applications from franchisees, as it is concentrating on improving its current network.

Other Pizza Delivery opportunities

There are, however, many other franchising opportunities in the pizza sector.

Papa Johns

As a leading pizza delivery chain, Papa Johns offers thick crust pizza, dough-based snacks, drinks and desserts. Founded in the US in the 1980s, Papa Johns expanded into the UK in 2000, and now has more than 5,000 branches across 45 countries worldwide, achieving an annual revenue that exceeds $3 billion.

Investors looking for a slice of the action do not need previous experience with a food franchise, as long as they are business-oriented and possess good communication skills. A minimum investment of £100,000 and £18,500 in franchise fees will be required to get a Papa Johns store up and running. New franchisees will benefit from a six-week training scheme that includes marketing support, as well as a royalty reduction programme and a free oven.

Fireaway

This franchise offers its customers authentic, Italian, stone fired pizza in just three minutes. Fireaway puts the fast in fast food. But just because its served in record time doesnt mean the pizzas compromise on taste or quality.

Customers can design their perfect pizza, with 25 tasty toppings to choose from. For the base, forget about just being offered traditional tomato. There is also BBQ, pesto and garlic to choose from. Then you pick your type of cheese, meat (if you want it) any additional toppings, and then, to finish, either chilli oil, garlic oil, oregano or chilli flakes.

The business launched in 2011 and has since opened eight locations with many more in the pipeline. Expect to soon see a Fireaway in Brighton, Scotland, Stoke-on-trent, Bournemouth, and many more locations up and down the UK.

Because Fireaways current ambition is to drastically increase its UK presence, it isnt trying to make profits from its franchisees. Fireaway will sort out marketing and supply the most talented chefs from Italy to make sure that the brands high standards are maintained across every franchise location.

To become a Fireaway franchisee, you need to make a total investment of £48,000. The expected revenue after two years is an impressive £500,000. So why wait? Head to its client page here to find out more and apply.

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